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Calculating 'cash flows at the end' Today ( Year 0 ) , Cucumber Corporation ( CUC ) is considering whether to buy a new greenhouse
Calculating 'cash flows at the end' Today Year Cucumber Corporation CUC is considering whether to buy a new greenhouse that costs $ in order to grow cucumber. In Year zero, the new greenhouse will result in a $ reduction in accounts payable from the companys current level of $ To partially fund the investment in the new greenhouse, CUC will obtain a nineyear principal and interest loan of $ with an interest rate of per annum. CUC expects to utilize the new greenhouse for nine years. In Year CUC has already agreed to sell the greenhouse in nine years time to a competitor for $ Tax rules state the greenhouse should be depreciated on a straightline basis over years. Assume the company tax rate is It is predicted that accounts receivable associated with the new greenhouse must decrease immediately by $ What are the 'cash flows at the end'?
Calculating 'cash flows at the end'
Today Year Cucumber Corporation CUC is considering whether to buy a new greenhouse that costs $ in order to grow cucumber.
In Year zero, the new greenhouse will result in a $ reduction in accounts payable from the companys current level of $
To partially fund the investment in the new greenhouse, CUC will obtain a nineyear principal and interest loan of $ with an interest rate of per annum.
CUC expects to utilize the new greenhouse for nine years. In Year CUC has already agreed to sell the greenhouse in nine years time to a competitor for $
Tax rules state the greenhouse should be depreciated on a straightline basis over years. Assume the company tax rate is
It is predicted that accounts receivable associated with the new greenhouse must decrease immediately by $
What are the 'cash flows at the end'?
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